Pacific Group to convert a third of HF assets to gold

Pacific Group to convert a third of HF assets to gold

Hong Kong based asset manager The Pacific Group is to convert up to a third of its hedge fund assets into physical gold, in a bet that bullion prices will increase as investors ditch currencies in favour of precious metals.

According to Bloomberg, Pacific group founder and chief investment officer William Kaye is planning to take delivery of USD35m in bullion and has secured vault space at Hong Kong International airport to store the gold.

Pacific Group’s USD95m Greater Asian Hedge Fund recorded returns of 2.8 per cent in 2012 taking its cumulative net return since inception in February 2000 to 195 per cent.